Organic fibers have been used heretofore for absorbing or adsorbing oil; however, they also tend to absorb water and, hence, their capacity for sorbing oil is limited. Nevertheless, the availability of paper machine sludge derived from the white water of effluent from the paper making machines in the paper making industry as a source of fibers at low cost and in large volume is attractive. Accordingly, it is an object of the present invention to take advantage of this availability and low cost of paper machine sludge by converting it to a material capable of sorbing oil substantially to the exclusion of water. Further objects are to convert the sludge of a material which will float on the surface of fresh or salt water indefinitely substantially without sorbing water; which will continue to float after it becomes impregnated with the oil; which can be skimmed off the surface and the oil recovered therefrom by draining or mechanical squeezing; which can be produced in the form of cakes, pellets or powder for deposit on the surface of the water; which is non-toxic; which is environmentally acceptable; and which can be produced at a low cost with a minimum amount of equipment.